SC stays INR-786-mln VAT demand against IRCON; sends notice to Bihar tax dept
This story was originally published at 18:21 IST on 17 March 2026
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NEW DELHI – The Supreme Court has stayed the recovery of INR-786.4-million value added tax demand against IRCON International Ltd. for the financial year 2010-11 (Apr Mar) and FY13 to FY14. The top court issued a notice to the Commissioner of State Tax, Bihar, on IRCON International's plea against the tax demand and listed the case for hearing on Apr. 24.
The case has its genesis from IRCON International getting a contract in 2009 for construction of steel super structure and other ancillary works of rail, road, bridge across river Ganga in Patna by the central railways. In terms of the contract and the letter of award, the petitioner submitted its bills to the East Central Railway and the latter paid the same.
Thereafter, the tax department issued a notice to IRCON International to show cause as to why it should not be not reassessed on the ground that evidence in support of claim of deduction on account of labour amounting to INR 2.07 billion and evidence in respect of input tax credit amounting to INR 4.58 million were not filed.
The tax department said that IRCON International had purchased iron and structural steel which have been fabricated into steel structure and the same has been transported and built. IRCON International was liable to pay tax on the sale or purchase made by them, said the department.
Last month, the Patna High Court upheld the tax demand against IRCON International. Challenging the high court's order, IRCON International moved the Supreme Court.
Tuesday, the shares of IRCON International Ltd. ended 0.6% higher at INR 126.52 on the National Stock Exchange. End
Reported by Surya Tripathi
Edited by Akul Nishant Akhoury
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